The US election has sparked renewed interest in strategic Bitcoin reserves, with crypto expert Ki Young Ju suggesting that the country could use its largest cryptocurrency to offset its debt. In a recent post, the CEO of CryptoQuant proposed that the government acquire 1 million BTC by 2050 and designate it as a strategic asset to trim domestic debt by 36%.
According to Ju, over the past 15 years, $790 billion in realized capital inflows have propelled Bitcoin’s market cap to $2 trillion. He believes that using a “pumpable asset” like BTC could help compensate for dollar-denominated debt, but acknowledges that creditors’ acceptance may be a challenge.
Ju also notes that establishing a strategic Bitcoin reserve could serve as a “symbolic first step” toward bringing global, nationwide legitimacy to the flagship cryptocurrency. However, he warns that old whales dumping their BTC to spite the US government is a risk that needs to be considered.
The current price of BTC is around $97,000, reflecting a 0.4% decline in the past 24 hours. While some may question the feasibility of using Bitcoin as a means of debt reduction, Ju’s proposal highlights the potential for strategic asset allocation and its impact on the US economy and crypto landscape.
Source: https://bitcoinist.com/strategic-bitcoin-reserve-could-help-offset-us-debt